LIXIL Valuation

Is 5938 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 5938 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5938 (¥1797.5) is trading above our estimate of fair value (¥1436.57)

Significantly Below Fair Value: 5938 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5938?

Other financial metrics that can be useful for relative valuation.

5938 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA10.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 5938's PS Ratio compare to its peers?

The above table shows the PS ratio for 5938 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
5332 Toto
1x3.0%JP¥682.4b
1969 Takasago Thermal Engineering
1.1x1.9%JP¥386.3b
5929 Sanwa Holdings
1.1x3.3%JP¥686.1b
5393 Nichias
1.3x2.5%JP¥313.1b
5938 LIXIL
0.3x2.7%JP¥516.4b

Price-To-Sales vs Peers: 5938 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.1x).


Price to Earnings Ratio vs Industry

How does 5938's PE Ratio compare vs other companies in the JP Building Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.3%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.3%
n/an/an/a
No more companies

Price-To-Sales vs Industry: 5938 is good value based on its Price-To-Sales Ratio (0.3x) compared to the JP Building industry average (0.5x).


Price to Sales Ratio vs Fair Ratio

What is 5938's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

5938 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: 5938 is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 5938 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥1,797.50
JP¥1,865.56
+3.8%
12.7%JP¥2,500.00JP¥1,650.00n/a9
Jul ’25JP¥1,711.50
JP¥1,865.56
+9.0%
12.7%JP¥2,500.00JP¥1,650.00n/a9
Jun ’25JP¥1,725.00
JP¥1,871.11
+8.5%
12.4%JP¥2,500.00JP¥1,700.00n/a9
May ’25JP¥1,672.50
JP¥1,813.33
+8.4%
5.5%JP¥2,000.00JP¥1,700.00n/a9
Apr ’25JP¥1,853.00
JP¥2,033.75
+9.8%
10.5%JP¥2,500.00JP¥1,700.00n/a8
Mar ’25JP¥1,926.00
JP¥2,033.75
+5.6%
10.5%JP¥2,500.00JP¥1,700.00n/a8
Feb ’25JP¥1,940.50
JP¥1,981.11
+2.1%
11.6%JP¥2,500.00JP¥1,700.00n/a9
Jan ’25JP¥1,760.50
JP¥1,936.67
+10.0%
12.3%JP¥2,500.00JP¥1,650.00n/a9
Dec ’24JP¥1,804.00
JP¥1,918.00
+6.3%
13.1%JP¥2,500.00JP¥1,650.00n/a10
Nov ’24JP¥1,707.00
JP¥1,945.00
+13.9%
11.9%JP¥2,500.00JP¥1,730.00n/a10
Oct ’24JP¥1,741.50
JP¥1,957.00
+12.4%
12.5%JP¥2,500.00JP¥1,730.00n/a10
Sep ’24JP¥1,824.50
JP¥1,972.00
+8.1%
8.8%JP¥2,300.00JP¥1,730.00n/a10
Aug ’24JP¥1,804.00
JP¥2,007.00
+11.3%
7.7%JP¥2,200.00JP¥1,730.00n/a10
Jul ’24JP¥1,824.00
JP¥2,096.00
+14.9%
10.1%JP¥2,600.00JP¥1,730.00JP¥1,711.5010
Jun ’24JP¥1,773.00
JP¥2,186.00
+23.3%
11.3%JP¥2,600.00JP¥1,730.00JP¥1,725.0010
May ’24JP¥1,997.00
JP¥2,328.00
+16.6%
7.8%JP¥2,600.00JP¥2,100.00JP¥1,672.5010
Apr ’24JP¥2,177.00
JP¥2,329.00
+7.0%
6.0%JP¥2,600.00JP¥2,100.00JP¥1,853.0010
Mar ’24JP¥2,164.00
JP¥2,358.18
+9.0%
8.5%JP¥2,800.00JP¥2,100.00JP¥1,926.0011
Feb ’24JP¥2,117.00
JP¥2,449.09
+15.7%
11.9%JP¥3,100.00JP¥2,100.00JP¥1,940.5011
Jan ’24JP¥2,001.00
JP¥2,512.73
+25.6%
11.8%JP¥3,100.00JP¥2,100.00JP¥1,760.5011
Dec ’23JP¥2,102.00
JP¥2,624.00
+24.8%
12.0%JP¥3,200.00JP¥2,240.00JP¥1,804.0010
Nov ’23JP¥2,007.00
JP¥2,754.00
+37.2%
11.5%JP¥3,200.00JP¥2,240.00JP¥1,707.0010
Oct ’23JP¥2,119.00
JP¥2,920.00
+37.8%
7.6%JP¥3,200.00JP¥2,550.00JP¥1,741.5010
Sep ’23JP¥2,405.00
JP¥2,945.45
+22.5%
7.7%JP¥3,200.00JP¥2,550.00JP¥1,824.5011
Aug ’23JP¥2,562.00
JP¥3,005.00
+17.3%
8.9%JP¥3,500.00JP¥2,600.00JP¥1,804.0010
Jul ’23JP¥2,536.00
JP¥2,981.00
+17.5%
11.2%JP¥3,500.00JP¥2,460.00JP¥1,824.0010

Analyst Forecast: Target price is less than 20% higher than the current share price.


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